In the lead up to tax time, we wanted to shed some light on what exactly Depreciation is and how it can save investors thousands in tax deductions. We prepared this interactive model to show exactly what can be depreciated in an investment property.
As an investment property ages the value of the materials used to build it decrease in value, this loss in value can be claimed as a deduction at tax time. Blue labelled items come under Capital Works (Division 43), or construction of the property, which are depreciable over 40 years. Green labelled items come under Plant & Equipment (Division 40), this includes loose items such as furniture, which can only be claimed if provided in a brand new condition at tenancy and not previously used by the owner.
Owners of strata properties can also claim a portion of the common areas, including pools, gyms and car parks.
View our interactive 3D Virtual Tour below to see some more items that are depreciable.
Thanks to Blackburne for allowing us to share their display unit at Marina East, Ascot Waters.
